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JPMorgan Chase (JPM) Stock Sinks As Market Gains: What You Should Know

JPMorgan Chase (JPM) closed at $113.02 in the latest trading session, marking a -0.29% move from the prior day. This move lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.75%.

Coming into today, shares of the biggest U.S. bank by assets had gained 2.41% in the past month. In that same time, the Finance sector gained 3.37%, while the S&P 500 gained 3.84%.

Wall Street will be looking for positivity from JPM as it approaches its next earnings report date. This is expected to be July 16, 2019. On that day, JPM is projected to report earnings of $2.53 per share, which would represent year-over-year growth of 10.48%. Our most recent consensus estimate is calling for quarterly revenue of $28.64 billion, up 3.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.01 per share and revenue of $113.96 billion, which would represent changes of +11.22% and +4.52%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for JPM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. JPM is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note JPM's current valuation metrics, including its Forward P/E ratio of 11.32. Its industry sports an average Forward P/E of 11.11, so we one might conclude that JPM is trading at a premium comparatively.

Also, we should mention that JPM has a PEG ratio of 1.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Major Regional industry currently had an average PEG ratio of 1.38 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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